Do you know the worth
of your under-utilized or
aging heavy equipment?
Your machines are probably
more valuable than you
think, especially if you’ve
kept the items in good
working condition. Unfortunately,
heavy equipment
that is unused, rarely used
and aging loses value the
longer it sits in a fleet yard.
The good news is that there
are plenty of eager buyers
around the world who are
willing to take used equipment
off your hands, even
during the off season. But
before you put equipment
up for sale, there are four
important steps to take
in order to maximize an
item’s resale value and get
the most out of the sale of
your used equipment.

1. Maintain equipment

Basic maintenance can
make a big difference in the
quality of your equipment
and its resale value. If an
item is in poor condition,
the pool of buyers interested
will be significantly
smaller than if the machine
has been taken care of
properly.

Owners that implement
a preventative
maintenance program immediately
after purchasing
equipment ensure that
items stay in the best possible
condition over time
and can then offer buyers
reliable machines. Basic
maintenance can prevent
the failure of major equipment
parts, especially hydraulic
components. Hydraulic
cylinders can leak
oil or other pressurized
fluids if bushings or seals
rot, wear or crack.

A preventative maintenance
program should focus
on:
• Repairing mechanical,
structural and cosmetic
issues as they arise;
• Keeping engines welloiled
and hydraulic fluid
at proper levels, and
changing fluids as per
manufacturer recommendations;
• Replacing parts that
have visible corrosion or
damage, such as rusting
hardware and broken
windows;
• Recapping or replacing
tattered tires at the first
signs of wear;
• Keeping a schedule and
record of all equipment
services.

2. Clean equipment

Cleaning equipment on
a regular basis not only
prevents residue buildup
and keeps it in top shape,
but also improves the resale
value once it is time
to auction items. Over
time, grease hardens and
needs to be scraped off areas
around knuckles and
on booms. Mud and vegetation
can build up in and
around tracks, especially
during the winter and early
spring, therefore, it’s recommended
owners clean
these areas often. Removing
dirt, grime and debris
from both the interior and
exterior of a machine keeps
it looking its best and operating
efficiently. Thoroughly
cleaning the equipment
both inside and out is highly recommended prior
to sale as a clean unit often
obtains a higher selling
price.

3. Repair equipment

It’s important to know
when to make equipment
repairs and when to skip
the investment. There is
not a universal guide to the
right cost/value ratio, but
sellers should remember
that most buyers will be
looking for equipment in
the best possible condition.

In addition to maintaining
hydraulics, all major
components, such as the
engine and transmission,
should function properly.
Before putting equipment
up for auction, sellers
should research recent
sales of similar items to assess
the potential value. A
seller should consider making
only the most necessary
repairs if the estimated
cost of repairs and the
original amount invested
in the item outweighs the
projected return. Where
equipment requires repairs
involving too much investment,
the seller should
consider selling the machine
for parts.

4. Find the ideal selling
platform

What seller wouldn’t
want to save time and
money when disposing of
equipment? Using an online
marketplace, sellers
eliminate transportation
costs associated with physical
auctions because equipment
is sold from where it
sits. Additionally, owners
can list equipment when
the time is right for their
business in order to take
advantage of the cash flow
for equipment required for
future work.

Inspection reports can
instill greater confidence
when buying equipment
sight unseen. These
should include photos
and detail features and
the current condition of
the equipment. Guarantees
behind the inspection
report provide assurance
that what a buyer sees online
is what they will get
upon delivery. When bidders
have greater confidence
in purchasing over
the Internet, sellers can
attract a larger audience
and potentially a higher
selling price.

Online auctions also offer
global reach. Although
it may be the off season
for the seller, online auctions
appeal to buyers in
areas with immediate or
year-round needs for particular
types of equipment.
Online marketplaces reach
developing countries as
well, where the demand for
older, less advanced equipment
can be higher.

Owners and fleet managers
need to consider the
impact of depreciation on
value when letting underutilized
and aging equipment
sit in their yards.
Taking simple steps to
maintain your heavy equipment
allows you to reach a
greater number of bidders
and helps buyers who may
not be able to afford new
top-of-the-line equipment.
Disposing of the equipment
in an efficient manner, via
an online marketplace, will
also take the hassle out of
the selling process and provide
greater value.

By Paul Hendrix, an equipment
pricing analyst with
IronPlanet, the leading online
marketplace for used
heavy equipment which
also operates TruckPlanet
for the buying and selling
of used commercial trucks.
For more information, visit
www.ironplanet.com or
www.truckplanet.com.